More M&A, More Problems? How Legal Tech Providers Keep Up With Accelerated Growth
Legal tech companies finalizing multiple legal tech deals in a year are becoming more common. But such rapid expansion can compound the risk of alienating employees and clients, and complicate meeting business goals.
September 08, 2021 at 01:00 PM
4 minute read
Mergers and AcquisitionsIn the past 12 months, legal tech consolidation has been accelerated by some companies closing on merger and acquisitioin deals every few months. While such a high-speed growth strategy can expand opportunities, legal tech providers note it requires a careful balance of evaluating corporate cultures and being ambitious while not biting off more than they can chew.
"At the end of the day, you have to remember the companies you bring in have culture and people they bring," noted Litera global director of business development and strategy Haley Altman, whose 10-person team at Doxly was acquired by Litera in 2019. "A pitfall may be if you're not realizing that you have to take the time to understand the people and culture you're bringing in because you need the people to be successful."
Acquisitions of small companies can quickly unravel tight-knit working relationships created in smaller companies, Altman noted. "Sometimes it can be difficult to bring a small group into a bigger group because they're used to working with the same people."
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